331: Credit for Donation of School Site (2025)

Who files this form

Use Form 331 to claim the Credit for Donation of School Site. The donated real property and improvements must be located in Arizona.

The form provides for claims by individuals, C corporations, S corporations, and exempt organizations with unrelated business taxable income (UBTI). It also provides for credits passed through from partnerships and S corporations.

A partnership claiming this credit must pass it through to its partners. An S corporation may elect to claim the credit itself or pass it through to its shareholders.

What you'll need

Have the following information ready to complete Form 331:

• Your name as shown on your tax return and your Social Security number or Employer Identification Number.
• For each donated property: the Arizona county, parcel number, conveyance date, conveyance recording number, and value based on an appraisal.
• Continuation sheets, if applicable.
• Forms 331-P or 331-S showing any credit passed through to you.
• For carryovers: the taxable year, original credit amount, and amount previously used or expired.

Partnerships must complete Form 331-P for each partner. S corporations passing through the credit must complete Form 331-S for each shareholder. Copies must be provided to the partners or shareholders, included with the entity's tax return, and kept for its records.

How to file

Include Form 331 with your tax return. The supplied form does not give a mailing address or e-file instructions.

Report the current-year credit, available carryover, and total available credit on the applicable summary form:

• Individuals without the Small Business Income election: Form 301, Part 1, line 10, columns (a), (b), and (c).
• Individuals with the Small Business Income election: Form 301-SBI, Part 1, line 6, columns (a), (b), and (c).
• C corporations, S corporations claiming the credit at the corporate level, and exempt organizations with UBTI: Form 300, Part 1, line 5, columns (a), (b), and (c).

Partnerships must include each completed Form 331-P with their return and stop after Part 2. S corporations passing the credit through must include each completed Form 331-S with their return.

Common mistakes

• Claiming both the credit and a deduction for the same donation. The credit is in place of a deduction for the donated property for which the credit is claimed.
• Using property outside Arizona. The donated real property and improvements must be located in Arizona.
• Checking both S corporation election boxes. Part 3 says to check only one box. The election is irrevocable for the indicated taxable year.
• Continuing past Part 2 as a partnership. Partnerships must pass the credit through to their partners and must not complete the rest of Form 331.
• Leaving out required copies. Include Form 331 with your return and, when applicable, copies of each completed Form 331-P or Form 331-S.

Questions people ask

How is the credit calculated for donated property?

Multiply each property's appraised value by 30%. Add those amounts, any continuation-sheet total, and credits passed through on Forms 331-P and 331-S to calculate the current-year credit on line 11.

Can I claim a deduction for the same property donation?

The form says the credit is in place of a deduction for the donation of the property for which you claim the credit.

How do I report an available credit carryover?

In Part 4, list the original credit amount and subtract the amount previously used or expired for each taxable year. Add the available amounts on line 18, then enter that total on line 20.

Can an S corporation pass the credit through to shareholders?

Yes. In Part 3, an S corporation makes an irrevocable election for the indicated taxable year to claim the credit itself or pass it through to shareholders. If it passes the credit through, it must complete Form 331-S for each shareholder, provide a copy to each shareholder, include copies with its return, and keep copies for its records.

Official sources

• https://azdor.gov/forms